Finance

Finance Options
PCP (Personal Contract Purchase)

Personal Contract Purchase (PCP) is an increasingly popular choice for car finance. It offers the best in elasticity at the end of the contract, together with low, fixed monthly payments. Personal Contract Purchase agreements involve the finance company buying your vehicle for you, with monthly payments being made at a fixed rate over a fixed period. At the end of the purchase agreement period, and once all monies owed are paid, the car is owned.

PCP is ideal if you are selecting out of your company car scheme. Your company car allowance can fund your monthly payments, but there is no company car tax to pay.

At the beginning of the contract your vehicles guaranteed future value is calculated, based on an agreed mileage and age. This is deferred as a final ‘balloon’ payment.

With PCP you do not have to commit to buying the car at the outset. You use it for an agreed period of time (24-48 months) and then decide at the end of this period what you would like to do. You have four options:

• Buy the car by paying an agreed minimum residual value
• Part-exchange the vehicle for another
• Sell the vehicle privately (settling the balloon)
• Or, subject to mileage and condition, return the car with nothing more to pay (e.g. if depreciation resulted in negative equity)

The benefits of Personal Contract Purchase:

• Low risk – A minimum future value is guaranteed
• Low deposit – keeps valuable personal or business cash available
• Low fixed monthly payments – perfect for budgeting
• Options – Buy the car, part-exchange it or just return it
• An improved vehicle – lower payments can help you choose a higher specification car
• Tax benefit – the cash alternative when you opt out of a company car scheme is not subject to company car tax
• VAT exempt – no VAT on your payments
• Any UK Address Delivery – Vehicles are sourced from and across the UK and can be delivered to virtually every UK address

Hire Purchase

We can arrange hire purchase, which has been a popular method of vehicle funding for many years, however we advise you that if you dint keep the vehicle for a great proportion of the contract you may not have an asset which will cover an outstanding finance settlement particularly if you have paid a low initial deposit.

Other finance methods

Lease Purchase – Similar to PCP without the guarantee on the future value. Please call to discuss..

Contract Hire – Business focused finance for the VAT registered customers who want the vehicle “off” balance sheet with a wide range of managed options including maintenance. Please call to discuss..

Finance Lease – Business focused finance for the VAT registered customers who want the vehicle “on” balance sheet. Please call to discuss..